With a permanent magnet you will not recharge it with enough power. It takes a lot of force to remagnetise a magneto.
There's a lot of tutorials and tips on the web.
http://www.brightsparkmagnetos.com/products/remagnetisation.htm
http://classic-harley.info/?p=890
http://www.gasenginemagazine.com/equipment/how-to-build-and-use-a-homemade-magneto-magnet-charger.aspx?PageId=1
https://www.youtube.com/results?search_query=magnetising+magneto+splitdorf
Sideplay depends on the type of bearings, if the ball bearings is demountable - the inner and outer race and cage of balls is separate, as in a Bosch D-type - the sideplay should be shimmed to zero. But I think the bearings you use is deep groove ball bearings and if the bearings are pressed on the shafts and in the housing, the side play can not be greater than the sideplay in the bearings. Measure that and shim to that. If the bearing is floating on the shaft, the sideplay should be just a tad greater than the bearing sideplay. I belive the housing is expanding more than the shaft. But check the books first before take my word for it....